Corporate Advisors Law Professionals LLP

NSE Tightens SME Listing Norms: A New Era of Responsible IPOs for Small and Medium Enterprises Amid the ongoing surge in IPO activity, the National Stock Exchange (NSE) has introduced stricter listing norms for SMEs, effective September 2024. Going forward, only companies with positive Free Cash Flow to Equity (FCFE) for at least two out of the three preceding financial years will be eligible to list on the SME segment. This move aims to ensure that only financially sound companies enter the market, safeguarding investors and promoting sustainable growth. With the recent introduction of a 90% cap on price movement on the listing day, the NSE is clearly focused on maintaining market stability and investor confidence. For SMEs in India, these new norms encourage prudent financial management and long-term planning, ultimately leading to more robust and resilient enterprises. As we navigate this evolving landscape, it's crucial for businesses to align with these standards to capitalize on growth opportunities while ensuring market integrity. #CapitalMarkets #SecuritiesLaw #SME #NSE #IPO #FreeCashFlow #FinancialStability #IndianBusiness #MarketRegulation #ICSI #ICAI

Union Budget 2024-25 focuses on enhancing Employment, Skilling, MSMEs, and the Middle Class, emphasizing nine key priorities: 1. **Agriculture**: Rs. 1.52 lakh crore to boost productivity and resilience. 2. **Employment & Skilling**: New Employment Linked Incentive schemes. 3. **Human Resource Development**: Initiatives like Purvodaya. 4. **Manufacturing & Services**: Credit guarantees for MSMEs, industrial parks. 5. **Urban Development**: Sustainable urban growth projects. 6. **Energy Security**: Clean energy initiatives and R&D for nuclear energy. 7. **Infrastructure**: Development of cultural and tourist sites. 8. **Innovation & R&D**: Anusandhan National Research Fund and space economy funding. 9. **Next Generation Reforms**: Digitizing land records, integrating job portals. **Key Highlights:** - **Ease of Doing Business**: Strengthening NCLTs, enhancing IBC with tech platforms, extending C-PACE services. - **MSME Support**: New credit mechanisms, e-commerce export hubs, increased Mudra loan limits to Rs. 20 lakh. - **Digital Governance**: DPI implementation, education loans via e-vouchers, revamped compliance portals. - **Energy Initiatives**: Support for cleaner energy, energy audits, R&D for Bharat Small Modular Reactor. - **Urban Development**: Land administration reforms, GIS mapping, rental housing policies. - **Innovation and R&D**: Operationalizing Anusandhan National Research Fund, venture capital for the space economy. **Taxation:** - **Personal Income Tax**: Revised slabs: - 0-3 lakh: Nil - 3-7 lakh: 5% - 7-10 lakh: 10% - 10-12 lakh: 15% - 12-15 lakh: 20% - Above 15 lakh: 30% - Standard deduction increased to Rs. 75,000. - Pension deduction increased to Rs. 25,000. - NPS contribution deduction from 10% to 14%. - **Corporate Tax**: - Foreign company tax reduced from 40% to 35%. - Angel tax abolished for all investors. - Simpler tax regime for foreign shipping companies. - Safe harbour rates for foreign mining companies. - Equalization levy of 2% withdrawn. - **Indirect Taxes**: - Reduced customs duties on critical minerals, mobile phone parts, and chemicals. - Exemptions for solar energy goods and marine products. - Increased BCD on plastics and ammonium nitrate. This budget aims for inclusive growth by fostering digitization, supporting MSMEs, implementing tax reforms, and advancing next-generation policies to enhance India’s economic landscape. #UnionBudget2024 #EconomicGrowth #Employment #Skilling #MSME #DigitalIndia #InclusiveGrowth #Innovation #EnergySecurity #UrbanDevelopment #Infrastructure #Startups #Taxation

Ministry of Corporate Affairs Updates: Enhancing Corporate Governance and Compliance Amendment to Directors’ Rules: The Ministry of Corporate Affairs has notified the Companies (Appointment and Qualification of Directors) (Amendment) Rules, 2024, which bring significant updates to the process of maintaining directors’ personal details. Key Changes: 1. Directors must update their personal mobile number or email address using e-form DIR-3 KYC by September 30th of each financial year. 2. If directors wish to update these details again within the same financial year, they can do so by submitting the e-form DIR-3 KYC with a fee of Rs. 500. Effective Date: These rules will come into force on August 1, 2024. MCA Amendment Rules : https://lnkd.in/geaFfrbq • IEPF Filings Transition: In light of the transition from MCA 21 version 2 to version 3, the Ministry has waived additional fees for filing various IEPF e-forms (IEPF-1, IEPF-1A, IEPF-2, IEPF-4) and e-verification of claims filed in e-form IEPF-5 until August 16, 2024. One-Time Relaxation: A one-time relaxation for e-verification under the third proviso to subrule (3) of rule 7 of the IEPFA (Accounting, Audit, Transfer and Refund) Rules has also been provided until August 16, 2024. IEPF Filings Transition : https://lnkd.in/gkTwqX5X #CorporateGovernance #MCAUpdates #DirectorQualification #IEPF #Compliance #CorporateLaw #ServiceIndustry #CorporateCompliance #BusinessRegulation #Governance #FinancialRegulation

Ministry of Corporate Affairs Proposes Key CSR Reforms and Highlights E-form Processing Success The Ministry of Corporate Affairs (MCA) has introduced several significant changes aimed at easing Corporate Social Responsibility (CSR) regulations. Key proposals include increasing the cap for administrative expenses under CSR to 10% from the current 5%, and extending the timeline for completing CSR projects. This move comes as part of the MCA’s recommendations to the finance ministry ahead of Budget 2024-25, addressing industry concerns about the feasibility of meaningful long-term projects. In other updates, the Central Processing Centre (CPC) has reported a remarkable increase in e-form processing, disposing of 22,857 e-forms between April and June 2024, compared to 21,704 forms processed by different RoCs in the same period last year. Additionally, the Government e Marketplace (GeM) has achieved an impressive 136% quarter-on-quarter growth in Gross Merchandise Value (GMV), reaching ₹21,24,761 crore in Q1 FY 24-25. This highlights the success of GeM in transforming the domestic e-procurement landscape. For more details, check out the full articles: • MCA CSR Rules: Financial Express • CPC E-form Disposal: MCA Official Site • GeM Growth: PIB Press Release #CorporateGovernance #CSR #EProcurement #GovernmentInitiatives #BusinessGrowth #Sustainability #Finance #MCA #GeM #IndustryUpdates #ICSI

Securities Law update- 1. Securities Laws Consultation on Draft Circulars - Amendment to Master Circulars for InvITs and REITs SEBI has issued a consultation paper to gather public comments on the draft Circulars. Market participants have requested clarity on the right to nominate a director on the Board of the Investment Manager of InvIT/Manager of REIT for a unitholder who also has this right as a lender. Consequently, amendments to the Master Circulars for InvITs and REITs dated May 15, 2024, are proposed to clarify that the restriction on the right to nominate a Unitholder Nominee Director does not apply if this right is available per clause (e) of sub-regulation (1) of regulation 15 of the SEBI (Debenture Trustees) Regulations, 1993. Details- https://lnkd.in/gdmaxr3H 2. Master Circular on Surveillance of Securities Market To streamline surveillance, SEBI has consolidated various circulars into a comprehensive Master Circular, categorized by subjects such as trading rules, shareholding in dematerialized mode, monitoring unauthenticated news from SEBI-registered intermediaries, and disclosure reporting under SEBI (Prohibition of Insider Trading) Regulations, 2015. Details- https://lnkd.in/gTTHpugw 3. SEBI Sets New Filing Requirements for AIFs Opting for Dissolution Period SEBI has introduced a circular detailing the filing requirements for alternative investment funds (AIFs) entering a dissolution period to handle unliquidated investments, offering flexibility for managing unsold investments due to liquidity issues. AIF schemes must file an information memorandum through a merchant banker before the expiration of the liquidation period. Details- https://lnkd.in/gm_2-kdk #SecuritiesLaws #InvITs #REITs #SEBI #Circulars #Investment #Surveillance #AIFs #DissolutionPeriod #ICSI #ICAI #Lawyer #Legalupdate #Governance #SEBIupdates

Capital Market and Securities Laws Update: SEBI tweaks norms for passive mutual fund schemes (July 09, 2024) The Securities and Exchange Board of India (SEBI) has revised the regulations concerning investments by passively managed mutual fund schemes in the group companies of their sponsors. The updated norms stipulate that no mutual fund scheme should invest more than 25% of its net assets in the listed securities of group companies of the sponsor, with an exception for equity-oriented exchange-traded funds (ETFs) and index funds. These specific funds, based on widely tracked and non-bespoke indices, can invest in line with the weightage of the constituents of the underlying index. For more details, read the full article: https://lnkd.in/gMEJnDfK #CapitalMarket #SecuritiesLaws #SEBI #MutualFunds #ETFs #IndexFunds #Investments #FinancialRegulations #PassiveFunds

Ministry of Corporate Affairs Announces Extension for Filing PAS-7 In accordance with Rule 9(2)(a) of the Companies (Prospectus and Allotment of Securities) Rules, 2014, every public company that issued share warrants prior to the commencement of the Companies Act, 2013, and has not converted such warrants into shares, should inform the Registrar about the details of these share warrants in Form PAS-7. The Ministry of Corporate Affairs has now deployed Web-form PAS-7 on the MCA-21 Portal. Stakeholders can file the requisite details in terms of the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023, through this Web-Form without payment of additional fees until 05.08.2024. For more details- https://lnkd.in/gZ2_vE2H #MinistryOfCorporateAffairs #PAS7 #Compliance #CorporateLaw #CompaniesAct #MCA21 #PublicCompanies #ShareWarrants #CorporateGovernance

Important Update for Corporate Affairs Stakeholders The Ministry of Corporate Affairs has announced the migration from V2 Version to V3 version in the MCA 21 portal. This will impact the filing of forms [BEN-2, MGT-6] due from 4th July, 2024 to 14th July, 2024. 🔹 The Ministry is launching e-Form MGT-6 (Form of return to be filed with the Registrar under section 89) and BEN-2 (Return to the Registrar in respect of declaration under section 90) in MCA -21 Version 3.0 on 15th July 2024. 🔹 These e-forms will not be available in MCA-21 Version-2 from 4th July 2024 to 14th July 2024. 🔹 In light of this transition, an additional 15 days will be allowed for filing these forms without any additional fees for due dates falling between 4th July 2024 and 14th July 2024. For more details, please visit: https://lnkd.in/ggiX4jUU #CorporateAffairs #MCA21 #ComplianceUpdate #CorporateFiling #BEN2 #MGT6 #MCA3.0 #RegulatoryUpdates #CompanyLaw #CorporateGovernance

Startup India: Increasing Profitability Amid Investor Pressure July 02, 2024 In the past two years, startups have made significant strides in profitability as venture capitalists and private equity firms emphasize profits over growth. In FY24, three unicorns—Oyo (travel tech), Mamaearth (Honasa Consumer), and Zomato (food tech)—achieved profitability. Additionally, Lendingkart and Mensa Brands' MyFitness became profitable, with MyFitness reaching EBITDA profitability. This trend contrasts sharply with previous years: only two unicorns, Chargebee and Rivigo, turned profitable in FY22, and just one, Digit Insurance, in FY23, according to Tracen data. For more details, read here: https://lnkd.in/gQKTvp5b #StartupIndia #Profitability #Unicorns #VentureCapital #PrivateEquity #Oyo #Mamaearth #Zomato #Lendingkart #MensaBrands #MyFitness #BusinessGrowth #InvestorTrends #BusinessNews

🚀 Important Announcement from the Ministry of Corporate Affairs (MCA)! 🚀 This July, MCA is launching 9 new forms for statutory filings on the V3 portal, enhancing our service to stakeholders. 🗓 Key Updates: 1️⃣ Company e-Filings on the V2 portal will be disabled from 04th July 2024, 12:00 AM. 2️⃣ Ensure no SRNs are pending payment/pending for investor details upload/Resubmission status. 3️⃣ Offline payments for the 9 forms via "Pay later" on V2 will stop on 01st July 2024, 12:00 AM. Please use online payment methods. 4️⃣ The V3 portal will be down from 13th July 2024, 12:00 AM to 14th July 2024, 11:59 PM. 5️⃣ The V2 Portal remains available for all other forms except the mentioned 9 forms. 🔍 New Forms Launching on 15th July 2024 at 12:00 AM: - MSME - BEN-2 - MGT-6 - TEPF-1 - TEPF-1A - TEPF-2 - TEPF-4 - TEPF-5 - TEPF-5 e-verification report 🔗 More details: [MCA Updates](https://lnkd.in/d79ufruK) #MCA #CorporateGovernance #ComplianceUpdate #CompanyLaw #BusinessNews #CorporateAffairs #DigitalTransformation #LegalCompliance #V3Portal #BusinessRegulations #Companysecretaries #ICSI #Lawyers #Charteredaccountant #ICAI